Examlex
Assuming full employment, if the private sector saves 8 percent of its income and the government raises taxes by $500 to finance public investments, total investment will increase by $460.
Crossover Rate
The point at which two or more investment projects have the same net present value or rate of return, used in capital budgeting to compare projects.
Mutually Exclusive
Refers to a situation where the selection of one alternative prevents the selection of any other alternative.
Required Rate
The minimum return an investor expects to achieve on an investment, taking into account its risk.
Average Accounting Rate of Return
A financial ratio indicating the expected return on an investment, calculated by dividing the average profit by the initial investment cost.
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